One of the elements of a business plan is the marketing strategy. Although not always appreciated by startup founders, it is actually crucial in the development of the company and the achievement of its business goals. In the following article, we will explain what a marketing strategy is, what it should include and how to create it. Read on.
Marketing strategy – table of contents:
- Why is a marketing strategy important?
- 4ps of marketing
- How to create a marketing strategy?
- Benefits of a marketing strategy
Why is a marketing strategy important?
Why does a marketing strategy appear in a business plan at all, and why is it so important? Such a strategy allows you to identify and plan activities that will help you find new customers and promote your product or service, which will eventually translate into increased sales. In a business plan, the marketing strategy is based on the market analysis. It determines where your company fits in the market and how it will promote and sell its product or service.
4ps of marketing
The four Ps are the four essential factors involved in marketing a product or service to the public. The four Ps are product, price, place and promotion. This is a commonly used mix for building marketing strategies. Let’s take a closer look at these elements.
When it comes to the product, you need to focus on such aspects as the trade name, related products, functionality, packaging, quality and warranty. Another thing is product promotion. Here you need to pay attention to such issues as the available marketing budget, advertising, and its forms, promotion strategy, sales, public relations, etc.
Another issue is how you plan to price your product. In this case, you need to focus on such aspects as retail and wholesale pricing, seasonal pricing, pricing policy, price flexibility and possibly product tying.
Place is the consideration of where the product should be available. In this case, it is necessary to discuss such issues as transportation and logistics, warehousing and inventory management, distribution channels and distribution centers, as well as order processing.
How to create a marketing strategy?
In order for a marketing strategy to be as effective and relevant as possible, it must be properly prepared. Therefore, it is worth remembering about several important points. The basis of such a strategy should be a unique selling proposition (USP). Prepare a description that will show the uniqueness of your company, and highlight everything that distinguishes you from the competition.
Make sure you know your customers when preparing a marketing strategy. You should understand what they expect and what they like. This will let you create a plan that is appropriate for your target audience. At this point you can also use the information gathered when doing market research. It is a good idea to introduce various visualizations such as charts, graphs, etc. in this section of your business plan.
A key element of a marketing plan is budgeting as it determines how much you have to spend on your marketing efforts. Proper budgeting will make it easier for you to achieve business goals and make the whole strategy more realistic. At the end of this section, it is worth including various marketing brochures or marketing videos.This always makes a good impression.
Benefits of a marketing strategy
What are the benefits of a marketing strategy? When it appears in a business plan, it is meant to show potential investors that you know what to do to achieve success, and that you have a planned schedule of promotional activities.
It is also designed to show how you will gain a competitive advantage, and how you will manage to meet your customers’ needs and expectations. It shouldn’t be forgotten that marketing and related activities are supposed to communicate the value of your company to the market. The more effective the communication is, the greater the chance of success.
Read also: 7 important startup roles.
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